BANK OF AMERICA: Another big crash is coming in China, but it won't be the stock market

And in China, where retail investors have been burnt by several
stock market slides over the past year, they are going straight
into the volatile commodity futures market.

Turnover in steel futures last week in China reached 606 billion
renminbi, according to Bank of America Merrill Lynch.

That is greater by about 50 billion renminbi than the combined
transaction value of the Shanghai and Shenzhen exchanges.

There are two main reasons for this. First, the outlook for
Chinese commodities demand has improved after a round of loose
monetary and credit policies, leading people to follow the trend
of rising prices.

And second, money managers are incentivised to take risks with
other people's money.

Here's BAML (emphasis ours):

These funds like leverage, which the futures market offers
plenty. If they win, the managers win big; if they lose, it’s the
investors' shirt anyway.

Now, as the A-share market in mid-2015 demonstrated, what goes up
fast, particularly if driven by leverage, often goes down
fast as well.

While the analysts can't predict exactly when the market will
turn down again, the terrifying chart suggests it can't go on for
longer than "a few months at most."